LendingClub Corporation – Parent Company-Only Financial Statements

12 Months Ended

Dec. 31, 2023

LendingClub Corporation – Parent Company-Only Financial Statements

The following tables present standalone condensed financial statements for LendingClub Corporation (Parent Company). These statements are provided in accordance with SEC rules, which require such disclosures when the restricted net assets of a consolidated subsidiary exceed 25% of consolidated net assets, and should be read in conjunction with the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements. For purposes of these condensed financial statements, the Parent’s wholly-owned subsidiary is presented in accordance with the equity method of accounting.

Statements of Income


Year Ended December 31,	2023		2022		2021
Non-interest income:
Marketplace revenue	$	41,817	$	48,231	$	115,759
Other non-interest income	9,503		15,628		16,718
Total non-interest income	51,320		63,859		132,477

Interest income:
Interest on loans held for sale	—		1,390		11,025
Interest on loans held for investment at fair value	2,589		2,875		4,436
Interest on retail and certificate loans held for investment at fair value	4,222		18,135		57,684
Interest on securities available for sale	6,802		7,608		8,922
Other interest income	811		861		26
Total interest income	14,424		30,869		82,093

Interest expense:
Interest on retail notes and certificates at fair value	4,222		18,135		57,684
Other interest expense	352		3,426		13,905
Total interest expense	4,574		21,561		71,589

Net interest income	9,850		9,308		10,504

Total net revenue	61,170		73,167		142,981

Reversal of credit losses	—		—		(3,382)

Non-interest expense:
Compensation and benefits	6,520		7,770		31,010
Marketing	—		188		5,460
Equipment and software	246		194		2,459
Depreciation and amortization	16,979		27,342		39,716
Professional services	1,210		523		14,666
Occupancy	9,552		13,346		17,751
Other non-interest expense	24,508		40,398		86,977
Total non-interest expense	59,015		89,761		198,039

Income (Loss) before income tax benefit	2,155		(16,594)		(51,676)
Income tax benefit	2,203		125,954		44,013
Income (Loss) before undistributed earnings of subsidiary	4,358		109,360		(7,663)
Equity in undistributed earnings of subsidiary	34,581		127,277		79,291
Net income	$	38,939	$	236,637	$	71,628

In accordance with federal laws and regulations, dividends paid by LC Bank to the Company are subject to certain restrictions. See “Note 21. Regulatory Requirements” for more information.

Statements of Comprehensive Income


Year Ended December 31,	2023		2022		2021
Net income	$	38,939	$	236,637	$	71,628
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on securities available for sale	6,706		(1,556)		9,153
Equity in other comprehensive loss of subsidiary	(1,282)		(43,528)		(2,619)
Other comprehensive income (loss), net of tax	5,424		(45,084)		6,534
Total comprehensive income	$	44,363	$	191,553	$	78,162

Balance Sheets


December 31,	2023		2022
Assets
Cash and due from banks	$	96,384	$	34,119
Interest-bearing deposits in banks	13,889		22,356
Total cash and cash equivalents	110,273		56,475
Restricted cash	46,628		75,409
Securities available for sale at fair value ($264 and $8,322 at amortized cost, respectively)	2,953		16,415

Loans held for investment at fair value	8,390		19,227
Retail and certificate loans held for investment at fair value	10,488		55,425
Property, equipment and software, net	17,078		34,199
Investment in subsidiary	937,987		923,618
Other assets	126,899		165,973
Total assets	$	1,260,696	$	1,346,741
Liabilities and Equity
Borrowings	$	2,468	$	10,704
Retail notes and certificates at fair value	10,488		55,425

Other liabilities	86,086		116,318
Total liabilities	99,042		182,447
Equity

Common stock, $0.01 par value; 180,000,000 shares authorized; 110,410,602 and 106,546,995 shares issued and outstanding, respectively	1,104		1,065
Additional paid-in capital	1,669,828		1,628,590
Accumulated deficit	(468,097)		(427,745)
Accumulated other comprehensive loss	(41,181)		(37,616)
Total equity	1,161,654		1,164,294
Total liabilities and equity	$	1,260,696	$	1,346,741

Statements of Cash Flows


Year Ended December 31,	2023		2022		2021
Cash Flows from Operating Activities:
Parent company net income	$	38,939	$	236,637	$	71,628
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiary	(34,581)		(127,277)		(79,291)
Income tax benefit	(2,203)		(125,954)		(44,013)
Net fair value adjustments	(2,903)		(5,929)		(5,936)
Reversal of credit losses	—		—		(3,382)
Change in fair value of loan servicing assets	50,281		33,840		37,138

Stock-based compensation, net	5,253		6,310		14,506
Depreciation and amortization	16,979		27,342		39,716
Gain on sales of loans	—		—		(3,372)

Other, net	274		16		9,326
Net change to loans held for sale	5,953		31,658		90,609
Net change in operating assets and liabilities:
Other assets	(30,602)		42,219		(29,556)
Other liabilities	(30,741)		(38,258)		(95,737)
Net cash provided by operating activities	16,649		80,604		1,636
Cash Flows from Investing Activities:
Acquisition of company	—		—		(145,344)
Payments for investments in and advances to subsidiary	—		(50,000)		(250,001)

Purchase of servicing asset investment	(50,576)		(59,880)		—
Proceeds from servicing asset investment	72,343		24,564		—
Net change in loans and leases	5,066		4,443		1,360
Net decrease in retail and certificate loans	47,545		171,853		437,870


Proceeds from maturities and paydowns of securities available for sale	7,861		46,548		103,258
Purchases of property, equipment and software, net	—		—		(1,811)
Other investing activities	200		2,370		8,804
Net cash provided by investing activities	82,439		139,898		154,136
Cash Flows from Financing Activities:


Principal payments on retail notes and certificates	(47,545)		(182,260)		(438,032)
Principal payments on Structured Program borrowings	(4,073)		(21,423)		(90,187)


Principal payments on short-term borrowings	(2,619)		(25,415)		(81,935)








Principal payments on long term debt	—		(15,300)		—
Other financing activities	(19,834)		(9,028)		(9,295)
Net cash used for financing activities	(74,071)		(253,426)		(619,449)
Net Change in Cash, Cash Equivalents and Restricted Cash	25,017		(32,924)		(463,677)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period	131,884		164,808		628,485
Cash, Cash Equivalents and Restricted Cash, End of Period	$	156,901	$	131,884	$	164,808

(1) Prior period amounts have been reclassified to conform to the current period presentation.